Do you pay rent with a credit card? Soon, you may not have the option

Fresh Splash/Getty From October 1, businesses will no longer be able to add surcharges to payments made on the EFTPOS, Visa or Mastercard networks, following reforms by the Reserve Bank of Australia .

The idea is that the price consumers see should be the price they pay .

If a cafe’s menu lists an oat latte for sale at A$6.50, it won’t be able to charge you, say, $6.57 for using a debit card or $6.63 for using a credit card.

However, banning a visible fee does not make card payments free.

Rather than absorb the remaining cost, some organisations may increase prices, or remove certain payment options altogether.

Last month, Macquarie Bank announced it was removing the option to pay by credit or debit card directly on DEFT, which processes more than 1.2 million rent payments each month.

According to the Australian Financial Review, Macquarie controls an estimated 40% of Australia’s rental payments market.

Using a credit card to pay rent might seem unusual.

But for some people, despite the extra fees, credit offers a way to manage cash flow, using the interest-free period to bridge the days between rent day and payday.

Could a reform designed to save consumers money leave some with fewer ways to pay? The surcharge ban has been presented as a cost-of-living win, but its consequences will not be shared evenly.

Someone has to foot the bill A surcharge is only the visible part of the costs that sit behind a card payment.

Banks, card networks and payment providers still charge businesses to process and move the money.

The RBA has acknowledged that from October 1, these costs may instead come to be reflected in a business’s overall prices .

While this may make the final “sticker” price clearer, it can also mean customers using lower-cost payment methods help pay for the rewards enjoyed by users of premium rewards cards .